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DISCUSSION THREAD: Episode 42 - Prof. Steve Keen

  • amkc
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1 year 9 months ago #1 by amkc
Great to have Professor Keen back to close out the year. His idea on a debt jubilee is compelling, especially as the range of outcomes expand during increasingly volatile times.

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  • Michael Gebhart
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1 year 9 months ago - 1 year 9 months ago #2 by Michael Gebhart
Replied by Michael Gebhart on topic DISCUSSION THREAD: Episode 42 - Prof. Steve Keen
Didn't listen to much of the interview with Keen because I've already heard him quite a bit over the last four and a half years on RT TV. The problem with the debt jubilee idea that Post-Keynesians like him push is that they ignore the other side of the equation, being the debt is someone else's income. If you simply whisk it away it will destroy certain groups of people such as pensioners who are invested in it. It makes sense to restructure malinvested debt but how is the government capable of doing that?

Also the guy pushes the BOE idea of one hundred percent endogenous money which assumes banks create money and look for reserve later and don't have to worry about inter-bank reserve redemptions. Banks create deposits, to a point yes, but they create them with instantly redeemable claims on reserves. If they are at meeting redemption requirements by other bank clearings then they can't create any more money.

There is some merit to his assertion that credit contraction is an indicator of recession but his assertions as to why are backwards.
Last edit: 1 year 9 months ago by Michael Gebhart.

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1 year 9 months ago - 1 year 9 months ago #3 by john
Excellent interview with Steve Keen. I first noticed him 10 years ago when he was interviewed on TV by the Australian national broadcaster (ABC) standing on his soap box screaming about the mathematical certainty of a financial crisis. Nobody was listening because things were booming. The great shame for Australia is that he was not really appreciated here. Kingston get the gold in my book for giving him a position.

Although many dismiss the debt jubilee, I have not heard anyone able to take down his proposal in a one on one debate. I hope he does tell us if he "gets the call".
Last edit: 1 year 9 months ago by john. Reason: typo

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